AMZN - Jeff Bezos Plans to Sell $5 Billion in Amazon Shares. Should Investors Follow Suit?
2024-07-17 06:41:00 ET
Tracking what insiders in a company are doing with their shares is a very old investment strategy. They clearly have more information than the general public, so understanding what they're doing is key to successful investing.
Jeff Bezos, founder, former CEO, and executive chair on the board of directors, plans to sell a ton of Amazon (NASDAQ: AMZN) stock. Should investors panic and follow suit? Or is there something else going on here?
Because Bezos is an insider, he must file with the SEC when he either buys or sells the stock or wants to make a plan to sell shares. That last part is key, as selling shares without notice could panic the public. If insiders disclose a plan to sell a chunk of stock well in advance, it shows it isn't a panic sale; it's just part of a larger financial plan.
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Jeff Bezos Plans to Sell $5 Billion in Amazon Shares. Should Investors Follow Suit?